CLA-2-62:OT:RR:NC:N3:360
Ms. Jennifer R. Diaz
Becker & Poliakoff
121 Alhambra Plaza
10th Floor
Coral Gables, FL 33134
RE: The tariff classification and status under the United States-Panama Trade Promotion Agreement (PANTPA), of women’s garments from Panama
Dear Ms. Diaz:
In your letter dated April 17, 2014, you requested a ruling on behalf of your client, Confecciones Comodoro, S.A, on the status of women’s garments under the PANTPA and the applicability of subheading 9822.09.63, Harmonized Tariff Schedule of the United States (HTSUS). You submitted six samples, all of which are being retained by this office. However, future requests should be limited to no more than five samples of related merchandise.
Style 01-0002-02-R-C Rosado, identified as a “Guayabera shirt-blouse,” is a woman’s blouse constructed from 100% cotton woven fabric. The blouse features a pointed collar, a right over left full front opening secured by six button closures, short hemmed sleeves, a rear yoke, front shoulder yokes, two pockets at the chest and two pockets below the waist with a decorative button at the center top of each pocket, two vertical columns of pin tucks extending vertically down the length of both front panels from the shoulder yokes to the garment bottom, two vertical columns of pin tucks extending vertically down the length of the center back panels from the yokes to the garment bottom, a decorative button at the top and bottom of each pin tucked column, side vents, and a slightly curved self-fabric bottom band. You state that this garment will also be constructed from 100% linen woven fabric.
Style 01-0008-09-R-L Aqua, identified as a “Guayabera shirt-blouse,” is a woman’s blouse constructed from 100% linen woven fabric. The blouse features a pointed collar, a right over left full front opening secured by six button closures, long sleeves with single button closures at the cuffs, a rear yoke, front shoulder yokes, two pockets at the chest and two pockets below the waist with a decorative button at the center top of each pocket, two pieces of pin tucked fabric sewn onto the garment and extending vertically down the length of both front panels from the shoulder yokes to the garment bottom, two pieces of pin tucked fabric sewn onto the garment and extending vertically down the length of the center back panel from the yoke to the garment bottom, a decorative button at the top and bottom of each pin tucked column, side vents, and a slightly curved self-fabric bottom band. You state that this garment will also be constructed from 100% cotton woven fabric.
Style 01-0008-16-R-C JeanOscu, identified as a “Guayabera dress,” is a woman’s dress constructed from 100% cotton woven fabric. The dress features a pointed collar, a right over left full front opening secured by nine button closures, short hemmed sleeves, a rear yoke, front shoulder yokes, two chest pockets and two hip pockets with a decorative button at the center top of each pocket, two pieces of pin tucked fabric sewn onto the garment and extending vertically down the length of both front panels from the shoulder yokes to the garment bottom, a single piece of pin tucked fabric sewn onto the garment and extending vertically down the length of the center back panel from the yoke to the garment bottom, a decorative button at the top and bottom of each pin tucked column, side slits with button closures, and a straight self-fabric bottom band. You state that this garment will also be constructed from 100% linen woven fabric.
Style 01-0008-09-R-L Turquesa, identified as a “Guayabera dress,” is a woman’s dress constructed from 100% linen woven fabric. The dress features a pointed collar, a right over left full front opening secured by ten button closures, long sleeves with single button closures at the cuffs, a rear yoke, front shoulder yokes, two chest pockets and two hip pockets with a decorative button at the center top of each pocket, two pieces of pin tucked fabric sewn onto the garment and extending vertically down the length of both front panels from the shoulder yokes to the garment bottom, a single piece of pin tucked fabric sewn onto the garment and extending vertically down the length of the center back panel from the yoke to the garment bottom, a decorative button at the top and bottom of each pin tucked column, side slits with button closures, and a straight self-fabric bottom band.
Style 01-0008-09-R-S Azul, identified as a “Guayabera dress,” is a woman’s sleeveless dress constructed from 100% linen woven fabric. The dress features a pointed collar, a right over left full front opening secured by seven button closures, a rear yoke, front shoulder yokes, two chest pockets and two hip pockets with a decorative button at the center top of each pocket, two pieces of pin tucked fabric sewn onto the garment and extending vertically down the length of both front panels from the shoulder yokes to the garment bottom, a single piece of pin tucked fabric sewn onto the garment and extending vertically down the length of the center back panel from the yoke to the garment bottom, a decorative button at the top and bottom of each pin tucked column, a self-fabric tie at the waist, side slits with button closures, and a straight self-fabric bottom band.
Style 01-0008-09-R-H Blanco, identified as a “Guayabera dress,” is a woman’s halter-style dress constructed from 100% linen woven fabric. The sleeveless and shoulderless dress features a pointed collar that extends around the neck, a right over left full front opening secured by nine button closures, two chest pockets and two hip pockets with a decorative button at the center top of each pocket, two pieces of pin tucked fabric sewn onto the garment and extending vertically down the length of both front panels, decorative buttons at the bottom of the front pin tucked columns, two pieces of pin tucked fabric sewn onto the garment and extending vertically down the length of the back panels, decorative buttons at the top and bottom of both back pin tucked columns, side slits with button closures, and a straight self-fabric bottom band. The garment leaves the upper back and the shoulders bare.
Although you requested classification of styles 01-0002-02-R-C Rosado and 01-0008-09-R-L Aqua as blouses under heading 6206, HTSUS, the garments feature pockets below the waist, which preclude classification under heading 6206. Consequently, the applicable subheading for styles 01-0002-02-R-C Rosado and 01-0008-09-R-L Aqua, identified as “Guayabera shirt-blouses” and constructed from 100% cotton woven fabric, will be 6211.42.0056, HTSUS, which provides for Track suits, ski-suits and swimwear; other garments: Other garments, women’s or girls’: Of cotton: Blouses, shirts and shirt-blouses, sleeveless tank styles and similar upper body garments, excluded from heading 6206: Other. The rate of duty will be 8.1 percent ad valorem.
The applicable subheading for styles 01-0002-02-R-C Rosado and 01-0008-09-R-L Aqua, identified as “Guayabera shirt-blouses” and constructed from 100% linen woven fabric, will be
6211.49.9050, HTSUS, which provides for Track suits, ski-suits and swimwear; other garments: Other garments, women’s or girls’: Of other textile materials: Other: Blouses, shirts and shirt-blouses, sleeveless tank styles and similar upper body garments excluded from heading 6206. The rate of duty will be 7.3 percent ad valorem.
The applicable subheading for style 01-0008-16-R-C JeanOscu, identified as a “Guayabera dress” and constructed from 100% cotton woven fabric, will be 6204.42.3030, HTSUS, which provides for Women’s or girls’ suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Dresses: Of cotton: Other: Other: Other: With two or more colors in the warp and/or the filling: Women’s. The rate of duty will be 8.4 percent ad valorem.
The applicable subheading for styles 01-0008-16-R-C JeanOscu, 01-0008-09-R-L Turquesa, 01-0008-09-R-S Azul, and 01-0008-09-R-H Blanco, identified as “Guayabera dresses” and constructed from 100% linen woven fabric, will be 6204.49.5060, HTSUS, which provides for Women’s or girls’ suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Dresses: Of other textile materials: Other: Other: Other. The rate of duty will be 6.9 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/tata/hts/.
The manufacturing operations are as follows:
The fabrics are produced in China.
The sewing thread is produced in China.
The buttons are produced in China.
The pleating is being performed in Panama.
The garments are both cut and sewn or otherwise assembled in Panama.
The garments are exported directly to the United States from Panama.
General Note 35, HTSUS, sets forth the criteria for determining whether a good is originating under the PANTPA. General Note 35(b), HTSUS, states, in pertinent part, that
(b) For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of Panama or of the United States under the terms of this note if–
(i) the good is wholly obtained or produced entirely in the territory of Panama or of the United States, or both;
the good is produced entirely in the territory of Panama or of the United States, or both, and--
each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or
the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and
satisfies all other applicable requirements of this note and of applicable regulations; or
the good is produced entirely in the territory of Panama or of the United States, or both, exclusively from material described in subdivisions (i) or (ii), above.
The shirt-blouses and dresses have been determined to contain non-originating materials and will have to undergo an applicable change in tariff classification in order to meet the requirements of GN 35(b)(ii)(A).
General Note 35(o), Chapter 62, Chapter rule 2 states:
For purposes of determining whether a good of this chapter is originating, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in that rule for that good.
The component that determines the classification of the cotton shirt-blouses and dresses is the non-originating cotton fabric.
The component that determines the classification of the linen shirt-blouses and dresses is the non-originating linen fabric.
For goods classified in subheadings 6204.42 and 6204.49, General Note 35 (0), 62.26 requires:
A change to subheadings 6204.42 through 6204.49 from any other chapter, except from headings 5111 through 5113, 5204 through 5212 or 5310 through 5311, chapter 54 or headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of Panama or of the United States, or both.
For goods classified in subheadings 6211.42 and 6211.49, General Note 35 (0), 62.38 requires:
A change to subheadings 6211.31 through 6211.49 from any other chapter, except from headings 5111 through 5113, 5204 through 5212 or 5310 through 5311, chapter 54 or headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of Panama or of the United States, or both.
The cotton woven fabric does not meet the terms of the tariff shift. Accordingly, the shirt-blouses and dresses constructed from 100% cotton woven fabric do not qualify for PANTPA preferential treatment because they do not meet the requirements of HTSUS General Note 35(b)(ii)(A). The merchandise will not be entitled to a free rate of duty under the PANTPA.
The linen woven fabric is classified in heading 5309 and meets the terms of the tariff shift.
General Note 35(o), Chapter 62, Chapter rule 4 states:
Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 and 5508 shall be considered originating only if such sewing thread is both formed from yarns and finished in the territory of one or more of the parties to the Agreement.
The sewing thread used to assemble the linen garments will not be formed and finished in one or more of the parties to the Agreement.
Based upon the facts provided, the shirt-blouses and dresses constructed from 100% linen woven fabric do not qualify for PANTPA preferential treatment because they do not meet the requirements of HTSUS General Note 35(b)(ii)(A). The merchandise will not be entitled to a free rate of duty under the PANTPA.
The shirt-blouses and dresses are both cut and sewn or otherwise assembled in Panama and may be entitled to a free rate of duty based upon the provisions of subheading 9822.09.63, subchapter XXII of the HTSUS. U.S. Note 41 to that chapter states:
Heading 9822.09.63 shall apply to dresses of heading 6204 and shirts and blouses of heading 6205 or 6206 (whether or not such goods are originating goods under the terms of general note 35 to the tariff schedule) containing the following:
(a) short or long sleeves;
(b) a center front placket with button closure that runs the full length of the good;
(c) a collar and yoke;
(d) either pleats or embroidery that run the full length of the good on both sides of the center front placket from the yoke to the hem with a decorative button where the pleats or embroidery meet the yoke;
(e) corresponding pleats or embroidery that run the full length of the good on both sides of the back from the yoke to the hem with a decorative button where the pleats or embroidery meet the yoke;
(f) four pockets with buttons on the front of the good;
(g) a straight hem; and
(h) side vents or slits with a button closure,
provided that the good is both cut and sewn or otherwise assembled in the territory of the United States or Panama.
Subheading 9822.09.63 applies to blouses of heading 6206, HTSUS. The applicable heading for styles 01-0002-02-R-C Rosado and 01-0008-09-R-L Aqua will be 6211, HTSUS.
Styles 01-0008-09-R-S Azul and 01-0008-09-R-H Blanco do not feature short or long sleeves, a requirement for subheading 9822.09.63.
Finally, styles 01-0008-16-R-C JeanOscu and 01-0008-09-R-L Turquesa do not feature the required pleats or embroidery on both sides of the back from the yoke to the hem.
Based upon the above, the garments will not be eligible for U.S. Note 41. The merchandise will be not entitled to a free rate of duty under the PANTPA.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Kimberly Rackett at [email protected].
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division